nursing, rehabilitation social work, prosthetics and orthotics, rehabilitation psychology, rehabilitation counseling, recreation for the ill and handicapped, and other specialized fields contributing to vocational rehabilitation; and

(3) disseminate information relating to vocational rehabilitation services, and otherwise promote the cause of rehabilitation of handicapped individuals and their greater utilization in gainful and suitable employment.

(b) The Secretary is authorized to make rules and regulations governing the administration of this Act, and to delegate to any officer or employee of the United States such of his powers and duties, except the making of rules and regulations, as he finds necessary in carrying out the purposes of this Act.

(c) The Secretary is authorized, directly or by contract

(1) to conduct research, studies, investigations, and demonstrations, and to make reports, with respect to abilities, aptitudes, and capacities of handicapped individuals, development of their potentialities, and their utilization in gainful and suitable employment; and

(2) to plan, establish, and operate an information service, to make available to agencies, organizations, and other groups and persons concerned with vocational rehabilitation, information on rehabilitation resources useful for various kinds of disability and on research and the results thereof and on other matters which may be helpful in promoting the rehabilitation of handicapped individuals and their greater utilization in gainful and suitable employment.

(d) There are authorized to be appropriated for the fiscal year ending June 30, 1966, and each succeeding fiscal year, such sums as may be necessary for carrying out the purposes of this section.

(e) For any fiscal year ending after June 30, 1968, such portion of the appropriations for grants under section 1 as the Secretary may determine, but not exceeding 1 per centum thereof or $1,000,000, whichever is the lesser, shall be available for evaluation by the Secretary (directly or by grants or contracts) of the programs authorized by this Act.28

PROMOTION OF EMPLOYMENT OPPORTUNITIES

SEC. 8. The Secretary of Labor and the Secretary of Health, Education, and Welfare shall cooperate in developing, and in recommending to the appropriate State agencies, policies and procedures which will facilitate the placement in employment of individuals who have received rehabilitation services under State vocational rehabilitation programs, and, together with the chairman of the President's Committee on Employment of the Handicapped, shall develop and recommend methods which will assure maximum utilization of services which that committee, and cooperating State and local organizations, are able to render in promoting job opportunities for such individuals.

REPORTS

SEC. 9. Annual reports shall be made to the Congress by the Secretary as to the administration of this Act.

28 Evaluation-P.L. 90-391.

AUTHORIZATION OF APPROPRIATION FOR ADMINISTRATION

SEC. 10. There are hereby authorized to be included for each fiscal year in the appropriations for the Department of Health, Education, and Welfare such sums as are necessary to administer the provisions of this Act.

DEFINITIONS

SEC. 11. For the purposes of this Act—

(a) (1) The term "vocational rehabilitation services" means the following services:

(A) evaluation, including diagostic and related services, incidental to the determination of eligibility for and the nature and scope of services to be provided;

(B) counseling, guidance, and placement services for handicapped individuals, including followup services to assist such individuals to maintain their employment;

(C) training services for handicapped individuals, which shall include personal and vocational adjustments, books, and other training materials;

(D) reader services for the blind and interpreter services for the deaf; and

(E) recruitment and training services for handicapped individuals to provide them with new employment opportunities in the fields of rehabilitation, health, welfare, public safety, and law enforcement, and other appropriate service employment.

(2) Such term also includes, after full consideration of eligibility for any similar benefit by way of pension, compensation, and insurance, the following services and goods provided to, or for the benefit of, a handicapped individual

(A) physical restoration services, including, but not limited to, (i) corrective surgery or therapeutic treatment necessary to correct or substantially modify a physical or mental condition which is stable or slowly progressive and constitutes a substantial barrier to employment, but is of such nature that such correction or modification may reasonably be expected to eliminate or substantially reduce the handicap within a reasonable length of time, (ii) necessary hospitalization in connection with surgery or treatment, (iii) prosthetic and orthotic devices, (iv) eye glasses and visual services as prescribed by a physician skilled in the diseases of the eye or by an optometrist;

(B) maintenance, not exceeding the estimated cost of subsistence, during rehabilitation;

(C) occupational licenses, tools, equipment, and initial stocks and supplies;

(D) in the case of any type of small business operated by the severely handicapped the operation of which can be improved by management services and supervision provided by the State agency, the provision of such services and supervision, alone or together with the acquisition by the State agency of vending stands or other equipment and initial stocks and supplies;

(E) the construction or establishment of public or other non-profit rehabilitation facilities and the provision of other facilities and services which promise to contribute substantially to the rehabilitation of a group of individuals but which are not

related directly to the rehabilitation plan of any one handicapped individual;

(F) transportation in connection with the rendering of any other vocational rehabilitation service;

(G) any other goods and services necessary to render a handicapped individual employable; and

(H) services to the families of handicapped individuals when such services will contribute substantially to the rehabilitation of such individuals.29

(b) The term "handicapped individuals" means any individual who is under a physical or mental disability which constitutes a substantial handicap to employment, but which is of such a nature that vocational rehabilitation services may reasonably be expected to render him fit to engage in a gainful occupation; except that nothing in the preceding provisions of this subsection or in subsection (a) shall be construed to exclude from "vocational rehabilitation services" any goods or services provided to an individual who is under a physical or mental disability which constitutes a substantial handicap to employment, during the period, not in excess of eighteen months in the case of any individual who is mentally retarded or has a disability designated for this purpose by the Secretary, or six months in the case of an individual with any other disability, determined (in accordance with regulations of the Secretary) to be necessary for, and which are provided for the purpose of, ascertaining whether it may reasonably be expected that such individual will be rendered fit to engage in a gainful occupation through the provision of goods and services described in subsection (a), but only if the goods or services provided to him during such period would constitute "vocational rehabilitation services" if his disability were of such a nature that he would be a "handicapped individual" under such preceding provisions of this subsection.

(c) The term "rehabilitation facility" means a facility which is operated for the primary purpose of providing vocational rehabilitation services to, or gainful employment for, handicapped individuals, or for providing evaluation and work adjustment services for disadvantaged individuals, and which provides singly or in combination one or more of the following services for handicapped individuals: (1) Comprehensive rehabilitation services which shall include, under one management, medical, psychological, social, and Vocational services, (2) testing, fitting, or training in the use of prosthetic and orthotic devices, (3) prevocational conditioning or recreational therapy, (4) physical and occupational therapy, (5) speech and hearing pathology, (6) psychological and social services, (7) evaluation, (8) personal and work adjustment, (9) vocational training (in combination with other rehabilitation services), (10) evaluation or control of special disabilities, and (11) extended employment for the severely handicapped who cannot be readily absorbed in the competitive labor market; but all medical and related health services must be prescribed by, or under the formal supervision of, persons licensed to practice medicine or surgery in the State.30

29 Definition of "vocational rehabilitation services"-P.L. 90-391. 30 Definition of "rehabilitation facility"-P.L. 90-391.

(d) The term "nonprofit," when used with respect to a rehabilitation facility, means a rehabilitation facility owned and operated by a corporation or association, no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual and the income of which is exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1954.31

(e) Establishment of a rehabilitation facility means (1) the expansion, remodeling, or alteration of existing buildings necessary to adapt them to rehabilitation facility purposes or to increase their effectiveness for such purposes (subject, however, to such limitations as the Secretary may, by regulation, prescribe in order to prevent impairment of the objectives of, or duplication of, other Federal laws providing Federal assistance in the construction of such facilities), (2) initial equipment of such buildings, and (3) the initial staffing thereof (for a period not to exceed four years and three months).32

(f) The term "State" includes the District of Columbia, the Virgin Islands, Puerto Rico, and Guam; and, for purposes of sections 4, 7, 12, and 13 only of this Act, American Samoa and the Trust Territory of the Pacific Islands, and for such purposes the appropriate State agency designated as provided in section 5(a) (1) shall be the Governor of American Samoa or the High Commissioner of the Trust Territory of the Pacific Islands, as the case may be.33

34

(g) (1) The "allotment percentage" for any State shall be 100 per centum less that percentage which bears the same ratio to 50 per centum as the per capita income of such State bears to the per capita income of the United States, except that (A) the allotment percentage shall in no case be more than 75 per centum or less than 33% per centum and (B) the allotment percentage for the District of Columbia,3 Puerto Rico, Guam, and the Virgin Islands shall be 75 per centum. (2) The allotment percentages shall be promulgated by the Secretary between July 1 and September 30 of each even-numbered year, on the basis of the average of the per capita incomes of the States and of the United States for the three most recent consecutive years for which satisfactory data are available from the Department of Commerce. Such promulgation shall be conclusive for each of the two fiscal years in the period beginning July 1 next succeeding such promulgation.35 (3) The term "United States" means (but only for purposes of this subsection) the fifty States and the District of Columbia.36

37

(h) The term "Federal share" means 75 per centum for the fiscal year ending June 30, 1969, and 80 per centum for each succeeding fiscal year, except that with respect to payments pursuant to section 2(b) to any State which are used to meet the costs of construction of rehabilitation facilities (as provided in section 11(a) (2) (E)) in such State, the Federal share shall be, for the fiscal year ending June 30, 1969, and for each subsequent fiscal year the percentage determined in accordance with the provisions of section 12(c) applicable with respect to that State.

31 P.L. 90-391.

32 Establishment of a rehabilitation facility-P.L. 90-391.

33 Trust territory-P.L. 90-391.

34 District of Columbia allotment percentage-P.L. 90-99.

35 P.L. 90-391.

36 P.L. 90-391.

37 Fed. share effective FY 1970-P.L. 90-391.

(i) The population of the several States shall be determined on the basis of the latest figures furnished by the Department of Commerce by October 1 of the year preceding the fiscal year for which funds are appropriated pursuant to authorization provided for in section 1.3 (j) The term "Secretary", except when the context otherwise requires, means the Secretary of Health, Education, and Welfare.

38

(k) Except where used in sections 12 and 16, the term "construction" means the construction of new buildings, the acquisition of existing buildings, initial equipment of such new buildings or newly acquired buildings, and initial staffing thereof (for a period not to exceed four years and three months), and the term "cost of construction" includes architects' fees and acquisition of land in connection with construction but does not include the cost of off-site improvements.39

GRANTS FOR CONSTRUCTION AND STAFFING OF REHABILITATION

40 FACILITIES

SEC. 12. (a) Effective for fiscal years beginning after June 30, 1965, the Secretary is authorized to make grants to assist in meeting the costs of construction of public or other nonprofit rehabilitation facilities. Such grants may be made only for projects for which applications are approved by the Secretary under this section.

(b) To be approved, an application for a grant for a construction project under this section must

(1) contain or be supported by reasonable assurances that (A) for a period of not less than twenty years after completion of construction of the project it will be used as a public or other nonprofit rehabilitation facility, (B) sufficient funds will be available to meet the non-Federal share of the cost of construction of the project, and (C) sufficient funds will be available, when construction of the project is completed, for its effective use as a rehabilitation facility;

(2) be accompanied or supplemented by plans and specifications which comply with regulations of the Secretary relating to minimum standards of construction and equipment, and with regulations of the Secretary of Labor relating to safety standards for rehabilitation facilities;

(3) be approved, in accordance with regulations of the Secretary, by the appropriate State agency designated as provided in section 5(a)(1);

(4) contain or be supported by reasonable assurance that any laborer or mechanic employed by any contractor or subcontractor in the performance of work on any construction aided by payments pursuant to any grant under this section will be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with Davis-Bacon Act, as amended (40 U.S.C. 276a-276a-5); and the Secretary of Labor shall have, with respect to the labor standards specified in this paragraph, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 5 U.S.C. 133z-15) and section 2 of the Act of June 13, 1934, as amended (40 U.S.C. 276c).

38 P.L. 90-391.

39 Definition of "construction" and "cost of construction"-P.L. 90-391. 40 Reference to "workshops" deleted-P.L. 90-391.